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Net Promoter Score
Net Promoter Score (NPS) is a form of asking the customers’ the likelihood of them recommending the product/service/company to others; typically a single question survey.
NPS is calculated based on a customer’s response to a single question: “How likely are you to recommend our product/service to a friend or colleague?” Customers are asked to rate their likelihood on a scale of 0 to 10.
Based on their responses, customers are categorised into three groups: detractors (0-6), passives (7-8), and promoters (9-10). The NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.
NPS is a widely used metric in customer experience management and is used to track customer loyalty over time. By improving their NPS, businesses can increase customer retention, reduce customer acquisition costs, and generate more referrals.